IFC and NAACAM partner to support South Africa’s automotive industry manufacturers
To support the growth of South Africa’s automotive sector, IFC has partnered with the National Association of Automotive Component and Allied Manufacturers (NAACAM) to develop a database to help local parts makers more easily meet the procurement needs of global car manufacturers.
Through the partnership, IFC will help NAACAM design and develop an online platform where local component manufacturers can track and respond to the inventory needs of original equipment manufacturers (OEMs), manufacturers whose goods are used as components in the products of another company, which then sells the finished item to end users.
Once launched, the database should more closely link car part buyers with suppliers, supporting business opportunities for local manufacturers and encouraging investment into the sector.
As part of efforts to deepen local supply chains and drive economic growth, the South African Automotive Masterplan (SAAM) aims to increase the market share of local component manufacturers in its automotive sector by about 21 percent to 60 percent by 2035. The new partnership closely aligns with the SAAM.
“NAACAM members are heeding the call to deepen localisation. This not only delivers much needed employment and other economic benefits, but also reduces suppliers’ risks as they become less reliant on imported components and contribute to greater stability in local OEM value chains,” said Renai Moothilal, NAACAM Executive Director.
“South Africa’s automotive sector is a key catalyst for job creation and economic growth in the country. IFC is pleased to partner with NAACAM to develop a platform that will lead to more business opportunities for local component suppliers and that will facilitate the transfer of technology, competencies and skills from global manufacturers to local suppliers,” said Adamou Labara, IFC’s Country Manager for South Africa,
The partnership agreement was signed in the presence of automotive industry stakeholders at battery manufacturer Auto-X’s Germiston facility in Johannesburg.
Through the partnership, IFC will also provide local component manufacturers in South Africa with capacity building services and access to peer learning opportunities from countries advanced in auto-parts manufacturing.